China: Communist Party Pushes Party Cells in Private Companies
In May 2012, the Central Committee of the Chinese Communist Party (“CCP”) circulated a notice urging lower-level CCP party committees and local governments to strengthen and improve the party’s work in private companies.

According to the above notice, the CCP’s goal is that all private companies with at least 50 staff should have at least some party members, and if a company has at least three (3) party members and if conditions permit, then a party organization should be established within that company.

Party organizations in private companies will be charged with educating and supervising the companies to lawfully do business and fulfill their social responsibilities, facilitating the establishment of harmonious labor relations in the companies and maintaining social stability.

The secretary of the party organization may be entitled to attend important meetings of the company management. If a private company has a labor union, the party secretary would be encouraged to also take the role of union chairman. The notice also contemplates providing special protection for party secretaries against termination of employment at some point in the future.

Private companies currently have no legal obligations to form party organizations. However, there is a general principle under the PRC Company Law that companies provide necessary conditions for their party organizations to carry out party activities.